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SIR VEYOR
03-22-2017, 04:17 PM
Hi All,
I need to find an alternative lender. Regular financial institutions aren't going to cut it.

There's a situation with a family property, and the person looking to take it over from their parents isn't able to get the CRA letter anytime soon. The owners are going into a home on short notice, so that won't be ready by then. Outside of the letter issue, everything else checks out pretty good with history and ability for payment, etc.

As an extra quirk, they put a mini-home on the property without subdivision it out at that time. There should be a lot of equity, especially if the value of the second home after subdivision is considered.

If anybody knows a reputable lender, especially with flexibility and creative thinking; please let me know.

Thanks,
SV

goosesniper
03-22-2017, 04:56 PM
Is this a farm property? Typically out buildings do not add value to a property. Having a mini home on it could be a liability. Regardless, to little info on the property type to give any specifications or recommendations.


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SIR VEYOR
03-22-2017, 05:48 PM
Is this a farm property? Typically out buildings do not add value to a property. Having a mini home on it could be a liability. Regardless, to little info on the property type to give any specifications or recommendations.
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No sense going into a lot of details on mostly private affairs.
Looking for alternative lenders, not regular banks. As for mini home, it's opportunity not liability. As soon as title around it is registered, it's worth about as much as any other house.

Only recommendations looking for are contact names better than random googling, is all. Alternative lenders can be flexible and see how to take advantage of future value, etc.

goosesniper
03-22-2017, 06:41 PM
Sorry then. Can't help.


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goosesniper
03-22-2017, 06:43 PM
No sense going into a lot of details on mostly private affairs.
Looking for alternative lenders, not regular banks. As for mini home, it's opportunity not liability. As soon as title around it is registered, it's worth about as much as any other house.

Only recommendations looking for are contact names better than random googling, is all. Alternative lenders can be flexible and see how to take advantage of future value, etc.

Private affairs. The only thing private is the names of the people, address, and other personal information. Telling the property type and more detail does not violate privacy. Anyways.


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firemachine69
03-22-2017, 07:02 PM
OP:

You do realize they've recently been seriously cracking down on folks who don't play by the rules when it comes to financing, right?

Dewey Cox
03-22-2017, 07:09 PM
Try farm credit Canada.
I'm assuming it's farmland?
Or there might be a provincial equivalent in your province.

SIR VEYOR
03-23-2017, 02:57 AM
OP:

You do realize they've recently been seriously cracking down on folks who don't play by the rules when it comes to financing, right?

Never said I was looking for illegal options.

But there are options and flexibility in amounts, conditions, etc. between lenders. Some of the payment options may seem painful, but it all depends on both sides and possible negotiations.

Instead of straight mortgage concept, maybe land development as part of supporting the financing. Part stays in family, part pays everything off, both sides happy with their returns. As one example.

SIR VEYOR
03-23-2017, 02:59 AM
Try farm credit Canada.
I'm assuming it's farmland?
Or there might be a provincial equivalent in your province.

It would best be considered dormant woodlot/farmland at best.

Thank you, I'll give them a look

coastal
03-23-2017, 07:23 AM
I've been down this road, there are the big ones like Alpine credits. Super easy, here's your money, but wow is it hard to claw your way out. I ended up going through a mortgage broker friend who knew private lenders, he arranged everything for me to get out of Alpine credit and into something quite a bit better. I would suggest to find a broker in your area, most of these smaller private lenders seem to stick to their area.

Good luck and make sure you sign a no penalty for leaving deal... That's one of the many places they trap you! Oh and the startup fee is another trick they like to use.

Plinker 777
03-23-2017, 08:44 PM
https://i2.wp.com/www.styledemocracy.com/wp-content/uploads/2016/11/russell-oliver.jpg?resize=759%2C500

Deuce-deuce
03-23-2017, 08:45 PM
A mini home on the he property won't make much difference... at least in bc it won't.

JustBen
03-23-2017, 09:04 PM
Find a good mortgage broker. Ask around - they aren't all the same.

SIR VEYOR
03-24-2017, 05:05 PM
I've been down this road, there are the big ones like Alpine credits. Super easy, here's your money, but wow is it hard to claw your way out. I ended up going through a mortgage broker friend who knew private lenders, he arranged everything for me to get out of Alpine credit and into something quite a bit better. I would suggest to find a broker in your area, most of these smaller private lenders seem to stick to their area.

Good luck and make sure you sign a no penalty for leaving deal... That's one of the many places they trap you! Oh and the startup fee is another trick they like to use.

Thank you very much for the pointers. I was expecting some up front extras, but back end stuff, especially wasn't sure what to watch out for.

I think they're starting to find a local broker. I sent them to one place I did some equipment financing with and they referred someone else.

And they mentioned some of theirs are location coverage specific.

SIR VEYOR
10-30-2017, 05:27 PM
Try farm credit Canada.
I'm assuming it's farmland?
Or there might be a provincial equivalent in your province.

Figured it was time to update this for anyone looking for similar.

This wound up being their final option.
Provincial farm board was almost rude when conventional agriculture already in full operation wasn't the situation.
FCC was very comfortable with all options, dormant, woodland, etc.
FCC said amount was very small for what they normally finance, had a lot more flexibility in evaluating than most banks.
Apparently mini homes don't scare them and can even use them as a separate collateral option.
Off farm income is not a bad thing in their opinion.
Business plan needed, but level of detail needed, and financial income expectations was reasonable and obtainable.

They are very early on, but are quite happy with FCC so far and are looking at some other things they offer.

Dewey Cox
10-30-2017, 09:24 PM
Glad to hear things went well.
FCC (and afsc in Alberta) want to get people into land.
The banks aren't so keen.

Me: I'd like a loan for some land.
Bank: Sure. How much land do you have?
Me: None. I'd like to buy some.
Bank: Let us know when you have some land. Then you can have some land.

(That's a short play I wrote with the working title "How can you have land if you don't have land?")

BrotherRockeye
10-31-2017, 09:07 AM
Glad to hear things went well.
FCC (and afsc in Alberta) want to get people into land.
The banks aren't so keen.

Me: I'd like a loan for some land.
Bank: Sure. How much land do you have?
Me: None. I'd like to buy some.
Bank: Let us know when you have some land. Then you can have some land.

(That's a short play I wrote with the working title "How can you have land if you don't have land?")

sadly that's bang on.